Div4Son

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Sunday, September 4, 2016

When the market is trading near its all-time high, it’s difficult to find good deals. Companies that are beaten up are normally where they should be. With the string of bad earnings results and the lawsuit from their truck drivers, Flower Foods (FLO) is certainly beaten up. However, I decided to initiate a new position with FLO. I see some potential in terms of dividend growth, FCF and yield. It's relative risk grade is right at 1.7 - which is below my 2.0 threshold.

Monday, August 1, 2016

Below are 3 companies with my criteria checklist that I am considering for August. Actually, I wanted to buy a couple of them in July, but the prices crept slightly over my buy zone. If there is a pullback, I will definitely consider adding them to my portfolio in small chunks.

Amgen is a biotechnology company that engages in developing, manufacturing and delivering human therapeutics for the treatment of illness in the areas of oncology/hematology, cardiovascular, inflammation, nephrology, and neuroscience.

Saturday, July 30, 2016

The first month of the quarter is usually a quiet month for me in terms of dividend income. July is following the same trend. I can’t complain though. The cash is coming in with no efforts from my part.

The market continues to be hot. Again, it has been difficult to find companies trading at fair value or below. I still try to invest though.

Wednesday, July 27, 2016

It’s always good to have a strategy for investing. This article gives a brief summary of how I had implemented the necessary checklists and tools to make my job of investing DGI stocks easier.

First, a bit of history...

I’ve been a passive investor for a long time via my mutual funds in my tax-deferred 401k. This required not much work from my part. All I had to do was to choose my allocation and regularly invest using a portion of my paycheck. I reallocated once a while and that’s it. All good, right? No - the fees were high. At least for me.

Of course, if your 401k plan allows for a market wide fund with very low fees, then this may be an option especially if you don’t have the time. Essentially, I was paying for someone to actively invest companies in the index.

Around 2 years ago, I started dividend stock investing for my taxable account. I did a lot of reading and researching over the summer of 2014. For sure, it isn’t a strategy for everybody - but it made sense to me. The thing about a 2-4% dividend is that over time, the dividends will provide you a layer of protection against loss. Of course, it is not 100% protection, but it give you protection against 20-40% dips in the market. How? It’s simple, 3% over 10 years means a 30% buffer. It’s slightly more the dividends are reinvested and compounded, but I like simple math.

Plus, after retirement from work, the dividends can be used as income source without touching the principle.Hopefully, extra income can be reinvested to continue the compounding machine.

Regardless of dividend stocks and mutual funds, there are investing steps that I believe everyone should follow:

Wednesday, July 20, 2016

I read the The Millionaire Next Door by Thomas Stanley in 2006. I wasn’t a millionaire then. I wasn’t too interested in investing with the exception of my 401. But, I was curious. Back then, I worked in my job for around 10 years. I was wondering how to get to the next level. I wondered what it would feel like to be a millionaire.

So, I read the book back then...

Instead of just net worth to classify wealth, Stanley coined the terms Under Accumulator of Wealth (UAW), Prodigious Accumulators of Wealth (PAW) and Average Accumulator of Wealth (AAW). The calculation is very simple. You take your age and multiply it by 10% of your pretax earnings to get your AAW. If you can get 2x or more, then you are a PAW. If you get ½ or less, then you are a UAW.